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Thursday, March 31, 2005

High taxes make you work harder

Socialists, in principle, hate big business. It is ironic then that their legislative excesses often help big business. While they continue to interfere with a true free market economy, they prevent one from existing whilst simultaneously supporting monopolistic practices that keep the publik focused on the "enemy" that are the trans-national businesses.

The latest worry is not having enough workers. SBS Television (Australia) Economics correspondent, Peter Martin, points out the benefits of over-taxing workers: they can't afford to work less, and this keeps productivity high.

You see, if the government lowered taxes, it is possible some of us would work less. For the families that don't need the money, you get horrible side effects like the father spending a bit more time with the kids. That's bad for the economy.
Martin points to a study on New York cabbies to show many workers will reduce their workload, if controls and texes are reduced, once a personal financial target is reached. But that is no reason to advocate high taxes for the "benefit of society."

He rightly points out lowering taxes might be attractive to the women workers: many opt out of the work force, because of their anti-social behavious of wanting to raise a family. This can put more pressure on Dad, who wants to provide for the family, but his effective tax rate in Australia is around 70% (ask me how if you have a problem with reality) once he earns over $62,500. Those that do work pay high taxes plus creche or child minding fees and transport costs to the point working makes little difference.

I predict this is where you will get the lapdog of big business (yes, government) interfering. They want to supply a steady stream of obediant workers, who will all contribute to the economy (technical speak for foreign profits and government revenue).

Hopefully, some lefties out there will be spinning in confusion at this tirade - a free market person sounding off at big business? Until government butts out, reduces taxes and allows a level playing field, the system isn't going to work.

There are other ways of managing the labour supply. When will the government learn that you dont fix problems by imposing taxes?

Society will benefit where people are free to pursue their dreams, are rewarded (and not penalised) for hard work, and admired for maintaining a sensible work life balance.

Posted by ZenTiger | 3/31/2005 10:18:00 AM


Blogger Antarctic Lemur said...

If theres too few workers, then the socialist solution is to bring from another country more workers for the lower end of the job spectrum. Isn't Labour busy changing immigration policy to allow more unskilled Polynesian workers into the country?

Meanwhile the tens of thousands of educated asian students who learn to live here told to eff off after they've finished their degrees. They can legally work for only 20 hours a week on their student visas. But allowing these guys to work more wouldn't increase Labours 'base' more now would it. Think of all those ultra-productive engineering and computer science students who can't stay in the country after they've finished with University.

3/31/2005 03:03:00 PM  
Blogger ZenTiger said...

Well spotted AL.

That ties in perfectly with a post Lucyna is building. I'll also expand on your observation when I get a moment.

3/31/2005 04:37:00 PM  
Blogger Antarctic Lemur said...

I have expert knowledge on immigration matters available to me at a moments call.

3/31/2005 04:41:00 PM  
Blogger Lucyna said...

AL, yes, overproduction is a massive problem. Don't want any of that. That concept, unfortunately, is hidden behind a multitude of layers that we take as given in society. I didn't think the socialists were bright enough to figure that one out... oh, I know, they're going off the socialist's handbook, rule no 1024: turf all the smart ones before they make too much of an impact.

3/31/2005 05:35:00 PM  
Blogger Antarctic Lemur said...

And encourage the rest not to believe their lying eyes.

3/31/2005 06:55:00 PM  
Anonymous Nothing Matters........ said...

antartic lemur,about your comment...
No, Labour doesn't want the unskilled polynesian's. They changed it toget rid of that stream. They are targetting the circulatory skilled,
i.e, the workers that are in demand worldwide, (whom incidently won't
want to come here as the pay is too low). Yes, it is hard for the
engineering and computer science students to stay, and its not because
of the policies that state they can't stay here, but rather no policies have been designed to address this group. They are supposed to get a work offer..which is hard, as employers want nothing to do with immigration. Lovely isn't it?

4/03/2005 06:07:00 PM  

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